By Bernie Cahiles-Magkilat
Bakers have agreed to absorb up to end this year the supposed 6 percent increase in prices of Pinoy Tasty and Pinoy Pandesal, although they have already started raising prices of branded breads of between 4-5 percent or at least by P2 per loaf.
This developed after a meeting between Trade and Industry Secretary Ramon M. Lopez and industry players led by the Philippine Baking Industry Group (PhilBaking).
Prices of Pinoy Tasty and Pinoy Pandesal will remain at P35.00 per loaf (450 grams) and P21.50 per 10-piece pack (250 grams), respectively, as a Christmas treat for the Filipino consumers, announced Lopez. Pinoy Tasty already accounts for 12-15 percent of total white loaves being sold in supermarkets and groceries.
PhilBaking President Paulo Valderrama stressed that bakers have not increased prices of Pinoy Tasty since its birth in October 2010 and in fact been reduced from P36 to P35 at present.
Valderrama said bakers have to sacrifice despite rising cost of LPG, diesel, sugar and raw materials due to higher taxes under TRAIN amid weak peso. In fact, he said, prices of flour have already gone up by an average of P45 per 40-kilogram bag including Harinang Pinoy, which is used for Pinoy Tasty and Pinoy Pandesal.
“Based on the major costs such as flour, sugar, and yeast, there has been an average of an estimated 6 percent increase due to forex, TRAIN, fuel, among others, but we have to sacrifice as we don’t want to add to the rising inflation,” said Vaderrama, who owns Marby breads.
Valderrama, however, said that prices of branded breads have already started going up by 4-5 percent or about P2 per loaf.
Gardenia Bakeries, the country’s largest bread manufacturer, said it will raise prices of its 600 gram white loaf bread by end this year by 2 percent from the current price of P62.
Nestor Constancio, marketing and sales head of Gardenia and PhilBaking director, said they cannot pass on all the cost on prices otherwise consumers will also shift to the cheaper-priced Pinoy Tasty and Pinoy Pandesal, which are getting more following that may affect sales of their premium products.
The DTI welcomed the news from the bread industry that they will hold off increases in Pinoy Tasty and Pinoy Pandesal up to end this year, saying it is a perfect timing as the government continues to bring the prices of basic necessities and prime commodities down to reasonable levels.
Pinoy Tasty and Pinoy Pandesal are products of a joint project between the DTI and the bakers group which underscores the industry’s corporate social responsibility to provide accessible and affordable bakery products to the consumers. This project triggered the proliferation of many other reasonably-priced loaves and breads in the market.
Pinoy Tasty and Pinoy Pandesal are available in the entire Luzon archipelago and key cities in the Visayas region to sufficiently supply the demands and bread requirement of the Filipino masses.